The Cleveland Cavaliers are engaged in serious discussions on a deal to send guard Iman Shumpert to the Houston Rockets, according to league sources.

Shumpert would be moved to the Rockets for primarily a package of non-guaranteed contracts, which would allow Cleveland to create financial flexibility to pursue other roster upgrades.

Wojnarowski detailed the financial implications that the trade would have on Cleveland’s future:

By trading Shumpert, the committed salaries in Cleveland would drop from $125 million to $115 million guaranteed, $4 million below the luxury tax, and save the team $17.1 million in potential taxes.

In total, the trade could save the Cavaliers $28 million this season, factoring in Shumpert’s contract and tax savings.

Shumpert would be reunited with Mike D’Antoni, who coached the defensive specialist when he played for the Knicks. Shumpert averaged 7.5 points, 2.9 rebounds and 1.4 assists in 76 games for the Cavs last season.